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MHI and TFC Collaborate for Ammonia Value Chain in Taiwan
TOKYO, Aug 8, 2024 – Mitsubishi Heavy Industries, Ltd. (MHI) has officially signed a Memorandum of Understanding (MoU) with Taiwan Fertilizer Co., Ltd. (TFC) that aims to initiate a joint pre-feasibility study focused on establishing a sustainable ammonia value chain in Taiwan. This initiative aligns with Taiwan’s aspirations to achieve “2050 Net-Zero Emissions.”
The agreement between MHI and TFC involves evaluating the technical and economic viability of a comprehensive fuel ammonia value chain. This includes analyzing critical components like receiving facilities, storage options, handling processes, and methods for delivering ammonia to power generation sites. The overarching goal of this study is to formulate a solid groundwork for a resilient ammonia infrastructure in Taiwan.
Ammonia, a compound made of hydrogen and nitrogen, is gaining recognition as an effective hydrogen carrier and can be utilized as a combustion fuel that does not emit carbon dioxide. As the quest for cleaner energy sources intensifies, developing a full-fledged value chain from ammonia production to its end-use is pivotal in fostering a carbon-neutral society.
In March 2022, the Taiwanese government set a climate action target aiming for carbon neutrality by 2050, emphasizing significant carbon emission reductions and the promotion of lower carbon-intensive energy alternatives. In support of this goal, TFC is actively working to enhance the utilization of both blue ammonia and green ammonia as viable fuels. Notably, TFC imported the first low-carbon ammonia in June 2023 and established an Ammonia Energy Division in January 2024 to support these efforts.
MHI Group has outlined a strategy focused on Energy Transition, where it seeks to decarbonize energy supply as part of its objective of achieving Carbon Neutrality by 2040. Through this strategic partnership with TFC, MHI Group aims to help create an ammonia-based fuel system that addresses the decarbonization demands across various sectors, particularly power generation, as part of a collective effort toward a sustainable, carbon-neutral future.
Definitions:
1. Blue ammonia: Produced using hydrogen derived from fossil fuels with CO2 capture methods.
2. Green ammonia: Made from renewable energy, water, and air, utilizing processes that do not emit CO2.
3. Low-carbon ammonia: Ammonia with reduced CO2 emissions throughout the supply chain, utilizing CO2 separation and capture technologies during production.
About Taiwan Fertilizer Co., Ltd.
Taiwan Fertilizer Co., Ltd (TFC) was established on May 1, 1946, and has become Taiwan’s largest modern fertilizer producer. Its headquarters are located in the Nangang District of Taipei City. In line with international carbon reduction trends and the commitment to the 2050 net-zero emission goal, TFC is actively advancing its clean energy initiatives to achieve growth and positive outcomes across economic, environmental, and societal dimensions. For additional information, please visit TFC’s website.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is a prominent global industrial entity involved in diverse sectors, including energy, smart infrastructure, industrial machinery, aerospace, and defense. MHI leverages cutting-edge technology and extensive expertise to provide innovative solutions aimed at achieving a carbon-neutral world while enhancing quality of life and ensuring global safety. For more information, visit MHI’s website or follow their insights on spectra.mhi.com.
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